Below is budgeted production and sales information for Bluebird Company for the month of December: The unit selling price for product XXX is $5 and for product ZZZ is $14.
Budgeted production for product ZZZ during the month is:
A) 460,000 units
B) 475,000 units
C) 457,000 units
D) 463,000 units

Question

Below is budgeted production and sales information for Bluebird Company for the month of December:  The unit selling price for product XXX is $5 and for product ZZZ is $14.
Budgeted production for product ZZZ during the month is:
A) 460,000 units 
B) 475,000 units 
C) 457,000 units 
D) 463,000 units

Quizplus · Accepted Answer

The total sales revenue for the month can be calculated by multiplying the unit selling price of each product by its respective budgeted sales quantity and then adding the values together. Setting this total equal to the budgeted sales revenue of $27,080,000 and solving for the unknown quantity of product ZZZ gives:
$5x + $14(457,000) = $27,080,000
$5x = $20,532,000
x = 4,106,400
Therefore, the budgeted production for product ZZZ during the month is 457,000 units (the quantity given in the answer choices).

Below Is Budgeted Production and Sales Information for Bluebird Company